JD Wetherspoon, operator of 715 pubs across the UK, has announced that it is to reduce the price of drinks to as low as 99p a pint from 5 January.

The company's pricing policy, which will run indefinitely, will see a pint of Greene King IPA cost less than a pound; around the same as it would have done in 1989, when the average pint of beer cost 96p. A bottle of Blossom Hill Rose wine will be available for less than £5 at most Wetherspoons and Lloyds No 1 outlets as part of the price cut, which will also include five new meals for £2.99 in addition to the regular menu.

John Hutson, JD Wetherspoon's chief executive, said: "People enjoy going to the pub, however, we appreciate that the economic downturn means that they now have to be more careful with their money. "Unlike most sales that start in January, our offers will not be ending within days, but will run indefinitely."

The Campaign for Real Ale (CAMRA) has welcomed the move by JD Wetherspoon, although it accepts that there are many pubs which will be unable to compete with such low prices. CAMRA's Tony Jerome said: "This is a good challenge to irresponsible below-cost selling by supermarkets where some of them are selling beer for less than the price of a bottle of water.

"We realise that other pubs will find it hard to compete with Wetherspoons on price but pub-going is not always determined by price. Other pubs can compete on serve, range of drinks, family facilities, entertainment and food."